Business Sale – Baltimore, Maryland Business Broker Sells Catonsville, Maryland Business

The Candle Light Inn, a well known Restaurant operating at the same location for over 30 years has been sold by Harvest Business Advisors who acted as business brokers in the transaction.  The business was a classic located in Catonsville, a charming town between Columbia and Baltimore, Maryland.

Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver the highest price in the smoothest sale transaction possible. Harvest provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.

 

How to Sell Your Business – Who is my Buyer? For Main Street Businesses

What every business broker, business intermediary, and business appraiser knows is that in order to get the highest price when you want to sell your business you must identify and attract the best, most motivated and qualified buyer for your business.  This will vary with your size, profitability, industry and so on. Below are the buyer types for smaller businesses with a value of up to $3 to $5 Million.

Remember to make your business as desirable as possible for your ‘best’ buyer.  This may involve physical changes to the business over time.  It may involve providing financing or training that is a little out of the norm.  It certainly will involve looking at the prospective buyers of your business as you would your regular customers and make your product (the total business) as great as possible.

Considering Selling Your Business? Please click here for a downloadable e-book, “ 10 Ways to Increase the Value of Your Business“.

Below, we are outlining how we classify buyer groups.  As with any grouping of people some people will fit several groups and some will not fit any.

Tradesmen With a Windfall.  All joking aside, lottery winnings and more often inheritances have been the down payment on more than one business.  Sometimes equity in a home serves the same purpose.  It is very difficult for working people to save enough money to buy a business.  Their preference is usually for smaller businesses that involve a trade such as small plumbing shops, auto shops, machine shops, etc.  Often the owner is the primary manager and there are a few other mechanics but little support staff.  Buyers tend to know the trade and be comfortable that they can do the work if all else fails.  If the prospect has a little more money and a business background they may buy a little larger business.  Typical transactions range from $50,000 to $500,000

New Americans.  This Buyer group tends to be buying jobs.  They are often overqualified but have language barriers, and they typically buy businesses such as delis, convenience stores, and gas-and-go stations.

Corporate Sales & Middle Managers.  They are similar to the tradesmen but they tend to buy a little larger business.  They buy profitable businesses and are interested in proven results: they do not want to re-invent the wheel.   They tend to buy businesses with two or three office support staff in addition to the production and sales people who know how to ‘run the shop’ when the owner is out.  They will often pay the best price because they are paying for the complete system including customer lists and goodwill.  Typical transactions range from $350,000 to $1,500,000.

Key Employees.  Key employees are often the best Buyers because they really know the business and they often have demonstrated experience running it.  They have a vested interest and have already bought into solving the problems and living with the risk inherent in that business.  However, many times key employees do not have the cash and the access to capital to buy the business.  They also may not have the energy or interest in being an owner.  Many owners have assumed their 60 year old managers would want to buy them out only to learn that the managers intend to retire the day the owner does.

Remember, in all cases, identify your best buyer.  Improve and market your business to attract that buyer.  If you are unsure about your best buyer do not hesitate to call or email. and have a confidential conversation.

Gregory R. Caruso, JD, CPA, CVA
Harvest Business Advisors
609-664-7955
gcaruso@harvestbusiness.com
www.harvestbusiness.com

Selling A Business; The Business Sales Process- How to Set an Asking Price For Your Business

All smart Business Brokers, Business Intermediaries, and Investment Bankers know, when a selling small business  you must have an asking price in order to get business sales activity.  Inexperienced Buyers absolutely want to know the business asking price.  If the asking price is too far from the business valuation pricing rules of thumb, they will tend to say they are not interested even if there hesitation really is because of price. Americans expect to negotiate, but only a little.  They tend not to want to insult the Seller by offering 50 cents on the dollar.  For this reason, it is important to price a business that is for sale correctly from the start.

Considering Selling Your Business? Please click here for a downloadable e-book, “ 10 Ways to Increase the Value of Your Business“.

It is very tempting to price a business high and wait for offers.  Business brokers have learned that they rarely come.  Often when buyers do appear for an overpriced listing it is from someone looking to steal a business on the cheap who puts in very low offers on many businesses waiting for a desperate business seller to accept their offer in frustration..  Believe me, once you commit to sell your business, the process of selling your business seems to take forever even when it is progressing well.  When no one is calling, it really drags out.  Don’t overprice your business and, later, fall victim to this low-ball business buyer strategy.

There are buyers for almost all profitable businesses but there may be only two or three in a given market area.  You need to get these buyers interested. Proper pricing will do that.  We recommend that you price the business no higher than 10% above the high end of reasonable. This will give you negotiating room while presenting an attractive offering that will encourage prospects to continue looking at your business.

If, after 90 days of proper marketing and prospecting (ads are appearing in the right websites, direct mail and selected calling to the right people), you do not have serious prospects working on an offer then you should seriously consider cutting the asking price.  The market is telling you something.

If you are in a hurry to sell, price the business near an average price based on your valuation. Make sure you still have some negotiating room in your asking price.  Buyers will almost always find a problem and the ability to give a little back solves many problems.  If possible, always keep a few chips in your pocket to use to solve problems all the way through settlement.

Under priced?

One of my first listings was a small daycare center.  The Seller had made her decision to sell and was now in a rush to get it done.  She had been marketing the business for the past two months herself.  She did not have a huge investment and just wanted out so, because she wanted a quick offer, she had priced the business at about 75% of the fair market value.  Her one prospect proceeded to negotiate her down to 60% of the fair market value and still chose not to close.  Prospects assumed something must be wrong with the business for it to be priced so low.  We immediately suggested raising the price to 95% of fair market value.  This was low enough to generate contacts from real prospects and gave us money with which to negotiate with.  The business was sold and settled at 85% of fair market value in 60 days.

Gregory R. Caruso, JD, CPA, CVA
Harvest Business Advisors
609-664-7955

gcaruso@harvestbusiness.com
www.harvestbusiness.com

Harvest Business Advisors works with contractors, engineers, distributors, manufactures, professional and service companies as  business brokers or intermediaries, valuation experts, and succession and exit strategy consultants in Maryland, Pennsylvania, New Jersey, and Virginia.

Sign and Visual Communication Materials Manufacturing Business for Sale

We are pleased to be selling the following business:

Five year old marketer and manufacturer of a broad range of signs and visual communication specialties including signs, banners, digital displays, electrical signs, engraving, frames, posts and mounting for signage, large printed materials, traffic/safety signage, etc. for all types of customers including private businesses, individuals, and government.  

Asking price is under 2.5 times last years discretionary earnings.

Statistics on included accounts are 48 clients account for over 76% of the business, all are repeat clients and over 60% of them have been clients for a minimum of three years. No single client currently accounts for more than 15 % of the business.

Growth has come from relationships developed from networking and BRAC.  The Company is a franchisee within a well-known and respected franchise system.     

The ideal buyer will be either an industry buyer or someone with sales, marketing or management background looking for an opportunity to expand an existing business-to-business service company. Individuals looking to make a “fresh start” are ideal candidates. The ideal buyer will be located or willing to move to the Baltimore, Maryland; Columbia, Maryland; Timonium, Maryland; Belair, Maryland, Aberdeen, Maryland or other nearby area.  

Reasonably priced in the upper $200,000’s.  Contact us for more information.

Business Broker Maryland, Business Broker Baltimore, Business Broker Aberdeen, Business Broker Bel Air, sign company for sale, business brokerage sign company.

 

Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver the highest price in the smoothest sale transaction possible. Harvest provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.

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